Characteristics of university loans

Image result for university loansUniversity loans are a type of funding especially for students. Because accessing a university career can be difficult for some Spanish students. Not only because of the tough competition but also because of the high prices and costs involved in moving and staying in a different city, registration, fees, books, materials, transportation and food. Student loans are intended to finance all or part of school courses, university degrees, language courses, postgraduate courses or doctorates. They are a common and effective alternative for people who are interested in promoting their professional development.

How to choose the best educational loan?

In the current market, finding a loan to finance studies is not complicated. What is very important is to review all the options in the market and compare their advantages and disadvantages. Sometimes, some students request a personal loan or use the credit card to finance their studies, however, it is better to look for a special loan to finance studies since this type of product usually has better conditions than other financial products.


The amount you can ask for is one of the most important factors and depends on the type of study you are going to carry out. You will not need the same amount of money if you only want to pay the one year tuition in a public university that you want to finance a master’s degree abroad. With some college loans you can get up to 60,000 euros if you need it.

Reimbursement period

The term that you will have to return the loan will depend on the entity in which you request it and the amount granted. In general, to ensure a comfortable reimbursement, the repayment terms range from a few months to several years, also including the grace periods.


During the grace period you can only pay the interest generated or defer payments until you finish your studies or the agreed period ends. Many entities include this possibility of applying to the loan a grace period, lasting from a couple of months to more than two years.

Type of interest

In general, the interest rate on student loans is usually lower than the other types of financing. Normally it ranges between 5% and 10%, it can be fixed, variable or mixed (fixed for a period of time and variable for the rest). Always compare between different offers and choose the cheapest loan for studies.


Most of the entities that grant student loans offer financing without commissions. Although there are also some who can request an opening commission or early cancellation. It is important to inquire about the conditions since these additional costs can make your loan considerably more expensive.

Requirements for student loans

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The requirements that you must meet always depend on the lender. However, there are a number of conditions that you must meet in all cases:

– To contract this type of financial product you must be of legal age, that is, be at least 18 years old and be a resident of Spain.

– Demonstrate that you can return your credit with proof of a regular and sufficient income. If you spend most of your time studying and you do not have time to have a job, parents can be your endorsements so you can access funding.

– In some cases it is usually necessary to also present a copy of the registration or pre-registration and show how you will use the money received.